Martin Lewis Warns Pre-1979 Births on Pensions

The money-saving expert Martin Lewis has issued a warning to people born before 1979 about their state pensions. He urges them to check if they can add up to £74,000 or more to their retirement funds by buying missing National Insurance (NI) years before April 2025. Lewis explained that the amount of state pension a person receives depends on the number of years of NI contributions they have on record.

If there are any missing years, it is possible to boost the pension significantly by buying them back. For example, spending £800 to buy a missing NI year could add an average of £6,100 per year to one’s pension pot. The deadline to purchase these missing years is April 2025, and Lewis stresses that sorting out these contributions can take several months, so immediate action is recommended.

While this is most important for those nearing retirement, Lewis notes that if you are under 45 or born after 1979, it probably isn’t worth it unless you have big gaps in your NI history. But for those with a few missing years close to having the minimum required for a state pension, buying these years could be very lucrative. Lewis also clarified that having a minimum of 10 years’ worth of contributions is essential to receive any state pension.

So if someone only has a few years on record, buying additional years won’t help unless it brings them up to the minimum threshold. He concludes that people should look at their NI contribution records and consider taking action while they still have the chance to make a big difference to their future finances. HMRC has warned parents across the UK about potential gaps in their National Insurance (NI) records that could affect their State Pension entitlement.

This issue mainly impacts those who became parents between 1978 and 2000 and claimed Child Benefit during that time. Women who took time off work to raise children are especially affected.

Martin advises pensions check urgently

Some parents who claimed Child Benefit before 2000 might be missing out on State Pension payments they are entitled to due to gaps in their NI records. This is mainly because the Home Responsibilities Protection (HRP) scheme may not have been applied correctly if the claimant did not provide their NI number. The HRP scheme, which ran from 1978 to 2010, reduced the number of qualifying years needed to receive the full basic State Pension for those with caring responsibilities.

In 2010, the HRP was replaced by National Insurance credits. James Murray, Exchequer Secretary to the Treasury, said, “The State Pension is the foundation of state support for people in retirement. We are urging people to check their National Insurance records to make sure they will receive the pension they deserve.”

Parents approaching or at State Pension age are advised to review their NI records and ensure any gaps can be filled to secure the full State Pension.

More than 257,000 pensioners across the UK have been contacted by HMRC, advising them to check for gaps in their National Insurance records that could affect their State Pension. The letters specifically target individuals who may be missing Home Responsibilities Protection (HRP) from their records. HRP was introduced to aid those who claimed Child Benefit between 1978 and 2000, reducing the number of qualifying years needed to receive the full basic State Pension.

This system was replaced by National Insurance credits in 2010. People who claimed Child Benefit before May 2000 and failed to provide their National Insurance number at the time of their claim may not have received HRP credits. Although HMRC has sent out letters, people are encouraged to check their eligibility online rather than wait for these notifications.

A free online eligibility checker is available through the HMRC app. If you think you might be affected or want to ensure the completeness of your National Insurance record, visit the HMRC website or check through their secure app. For more information on how to secure your State Pension entitlement, contact HMRC directly or use their online tools.